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LAW OF UKRAINE

of March 23, 2017 No. 1977-VIII

About the state support of cinematography in Ukraine

(as amended on 16-06-2020)

This Law determines bases of the state support of cinematography in Ukraine which aims at creating favorable conditions for film production development, establishment by transparent procedures of implementation of financing by the state of projects in the field of cinematography.

Section I General provisions

Article 1. Law coverage

1. Operation of this Law extends to subjects of cinematography, legal entities irrespective of pattern of ownership, the physical persons entrepreneurs and physical persons performing the activities connected with cinematography and/or performing production, storage, distribution, demonstration, other use of movies, other audiovisual works in the territory of Ukraine.

Article 2. Legislation on the state support of cinematography

1. The legislation on the state support of cinematography consists of the Constitution of Ukraine, the Civil code of Ukraine, this Law, the laws of Ukraine "About culture", "About cinematography", "About television and broadcasting", "About copyright and the related rights", "About government assistance to subjects of managing" and other legal acts of Ukraine, and also international treaties which consent to be bound is provided by the Verkhovna Rada of Ukraine.

2. Used in this Law are used in the values determined by this Law, and also the Law of Ukraine "About cinematography".

Section II of the Basis of the state support of cinematography

Article 3. Purpose of the state support of cinematography

1. The cinematography is recognized the sphere of culture which is supported by the state taking into account the purposes and the principles established by this Law and other legal acts of Ukraine.

2. The purpose of the state support of cinematography are:

1) creation of the proper legal and economic conditions necessary for development of cinematography;

2) forming of the industry of cinematography, production of movies, other audiovisual works, economically self-sufficient, competitive in the international markets;

3) creating favorable conditions and development of modern infrastructure for production, demonstrations and distribution of movies;

4) creation of favorable tax regime and provision of support to production, demonstration and distribution of national movies in Ukraine and abroad;

5) increase in tax revenues due to development of the industry of cinematography;

6) implementation of mechanisms of attraction of extrabudgetary funds, including foreign investments and remedies for foreign subjects of cinematography;

7) promoting of the Ukrainian values, Ukrainian and culture, increase in interest of the gross audience in national movies;

8) creation of proper mechanisms for protection of intellectual property rights;

9) creation of high-quality educational base for training of highly qualified specialists in the field of cinematography;

10) creation of conditions for increase in quantity of workplaces, strengthening of social guarantees of workers of cinematography;

11) development of material and technical resources of cinematography, production, demonstration, distribution and promoting of movies;

12) activation of the international, interstate, external economic cooperation and improvement of image of Ukraine in the international market as the country having the developed and highly competitive industry of cinematography.

Article 4. The principles of state policy in the field of support of cinematography

1. The principles of state policy in the field of support of cinematography are:

1) protectionism of the sphere of cinematography by the state, including productions, distribution, promoting and demonstrations of movies, in receipt of investments, including foreign;

2) recognition of development of cinematography by one of priorities of state policy in the field of culture;

3) efficiency of support of cinematography, including production, distribution, promoting and demonstration of movies;

4) availability of receipt of the state support by subjects of cinematography;

5) ensuring participation of subjects of cinematography, the public associations representing their interests, the creative unions in forming and realization of state policy in the field of cinematography;

6) openness and transparency of procedures of provision of the state support.

Article 5. Main directions of the state support of cinematography

1. The state provides and stimulates production (creation), distribution, promoting and demonstration of national movies in film, video networks, on television, on the Internet, etc., preserving, recovery, restoration national and the best samples of world cinema heritage, takes measures for return to Ukraine of the national cinema heritage which is beyond its limits and also promotes protection of intellectual property rights.

2. The state support is provided to subjects of cinematography, irrespective of pattern of ownership, providing creation (production), distribution, demonstration, advertizing and promoting of national movies, promotion of services of domestic film industry, carrying out the basic and applied researches performing educational activities in the field of cinematography, according to the procedure, established by this Law.

3. The state supports production of movies, joint with foreign subjects of cinematography, application of world achievements of science and technology in production, distribution, promoting, demonstration, advertizing, storage, recovery, restoration of movies.

4. The state participates in implementation of the international and domestic cinema programs, in the organization of the international and domestic Film Festivals, the film markets, other actions in the field of cinema and television and promotes participation of subjects of cinematography of Ukraine in them.

5. The state guarantees to all subjects of cinematography protection of intellectual property rights in the territory of Ukraine and other states according to the legislation of Ukraine and international treaties which consent to be bound is provided by the Verkhovna Rada of Ukraine.

6. The state supports cinematography, creating favorable conditions in spheres tax, customs, currency and other types of regulation.

Article 6. Basic principles and financial basis of the state support of cinematography

1. The state support of cinematography is performed at the expense of the means provided for the specified purposes according to this Law, the Budget code of Ukraine, the law on the Government budget of Ukraine for the corresponding year and other legal acts. Management of the means received for the purposes of the state support of cinematography performs the central executive body, realizing state policy in the field of cinematography.

2. The central executive body realizing state policy in the field of cinematography is manager of means of the state support of cinematography and disposes of them only based on decisions of Council for the state support of cinematography.

3. Sources of forming of means of the state support of cinematography are:

1) the means received from the Ukrainian cultural foundation which performs special functions on assistance national culturally to development of Ukraine;

2) the means of the Government budget of Ukraine provided by the law on the Government budget of Ukraine for the corresponding year;

3) other receipts which are not prohibited by the legislation.

4. Expenses on the state support of cinematography are provided in the Government budget of Ukraine according to the separate budget program.

5. Except sources of forming of the means of the state support of cinematography provided by part three of this Article, the financial support of cinematography can be also performed for the account:

1) grants, gifts, charitable fees and donations, other types of charity;

2) means of local budgets, including local funds of financial support of cinematography in the territory of the corresponding territorial community;

3) other sources which are not prohibited by the legislation.

Article 7. Forms of the state support of cinematography

1. The state support of cinematography is performed in the following forms:

1) implementation of public purchases of the goods, works and services necessary for production (creation) of documentary, educational, animation movies, movies for children's audience (taking into account the art and cultural importance), movies of the art and cultural importance (author's movies) and movies debuts in amount to 100 percent inclusive the total estimated cost of production of the corresponding movie;

2) provision of government subsidy on production (creation) of the movie (game, animation, etc.) which amount cannot exceed 80 percent of total estimated cost of production of the movie. The compulsory provision of provision of such subsidy is confirmation by the applicant of availability at it of the means necessary for financing of production of the movie, of at least 20 percent of total estimated cost of production (creation) of the corresponding movie;

3) provision of government subsidy on production (creation) of the television movie, television series which amount cannot exceed 50 percent of total estimated cost of production of the television movie, television series. The compulsory provision of provision of such subsidy is confirmation by the applicant of availability at it of the means necessary for financing of production of the television movie, television series, of at least 50 percent of total estimated cost of production (creation) of the corresponding television movie, television series;

4) provision of government subsidy for return of part of the qualified expenses performed by the foreign subject of cinematography in case of production (creation) of the movie according to the procedure provided by this Law;

5) provision of government subsidy on acquisition of mobile portable digital complexes, vehicles for ensuring demonstration of national movies in towns, villages, settlements with the population no more than 250 thousand inhabitants or complexes of electronic cinema which amount cannot exceed 50 percent of cost of the corresponding complexes;

6) provision of government subsidy for financing of basic and applied researches, and also educational activities in the field of cinematography, including production (creation) of movies by students, training in Ukraine and abroad, etc.;

7) provision of government subsidy on distribution and/or promoting of national movies by complete or partial payment of expenses on holding creative meetings, presentations, premier displays, advertizing (irrespective of the used advertizing means) and other necessary actions, including with participation of creative groups of movies;

8) provision of government subsidy for payment of actions for preserving, recovery, restoration and promoting of national cinema heritage, to its return to Ukraine if it is abroad, and also for payment of production of archive sets of initial materials of the national movies meeting modern production requirements of long-term conservation storage in the State fund of movies Ukraine of archive set of initial materials, initial materials and film copies of all national movies;

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